Citing non-compliance with the Nigerian Electricity Regulatory Commission’s [NERC] order, the Federal Government has directed the Ikeja Electricity and Eko Electricity discos to immediately halt their replacement of Unistar prepared meters billed to begin from Tuesday, 14th November.
Since the Discos intimated their customers about this replacement, many of them have been thrown into confusion, and fear of being made to bear the cost of the replacement after they had spent thousands on acquiring the old meters.
The Discos recently issued notices to their customers regarding the upcoming phase-out of Unistar prepaid meters due to the Token Identifier [TID] rollover issue.
The notice urged all affected customers to update their meters to avoid service disruptions. In a public statement, for instance, Ikeja Electric explained, “Dear esteemed customer, please note all Unistar meters will be phased out by 14th November 2024 as TID rollover beckons.”
The company encouraged customers to take prompt action by visiting their online portal to apply for a new prepaid meter.
The phase-out, a response to the technological limitations of the older meters, has sparked concerns among consumers about potential replacement costs and possible disruptions to their electricity service.
However, the DISCO communication was brief, leaving many consumers uncertain about the details of the transition and what steps they should take.
According to the Vice Chairman of the Federal Competition and Consumer Protection Commission, (FCCPC) Mr. Tunji Bello, the announcement lacked critical information regarding whether consumers would be liable for the replacement costs, raising fears that the transition could lead to arbitrary estimated billing and undue financial strain on consumers.
According to the text message “Good evening FCCPC. The exploitation of IKEDC on the change of meter is unacceptable. I have working meters in my house in GRA and they have given a deadline to change meters that ultimately belong to them without bearing some cost. To change the meters in my house will cost about N1m. Please kindly intervene. This is too much to bear at this difficult time, thank you”.
The FCCPC’s Executive Vice Chairman and Chief Executive Officer, read out this text at a stakeholders’ meeting held at the FCCPC headquarters in Abuja which was attended by representatives from the NERC, the Nigerian Electricity Management Services Agency (NEMSA), various electricity distribution companies (DISCOs) and Unistar Hitech Systems Limited to address pressing metering issues impacting Nigerian consumers.
To prevent potential exploitation, the FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.
Mr. Bello stressed that the FCCPC would enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.
The FCCPC’s directive to discontinue the replacement process stems from the DisCos’ non-compliance with NERC’s “Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry.” Both NERC and NEMSA endorsed the FCCPC’s stance on the issue.
The NERC’s order mandates that DisCos must prioritise metering for unmetered customers under the National Mass Metering Programme (NMMP) and follow strict guidelines for replacing faulty or obsolete meters. These guidelines require DisCos to inspect faulty meters and provide detailed information in the replacement notice, including the inspection date, the inspecting officer’s credentials, the identified fault, and the scheduled replacement date. Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit.
The Federal Competition and Consumer Protection Commission also urged electric distribution companies (DISCOs) to carry energy consumers along before classifying them into bands and also adhere strictly to industry regulations on billing unmetered consumers.
During the meeting, Mr. Bello highlighted significant issues facing electricity consumers, from billing inaccuracies to inadequate customer care. Mr. Bello noted that systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers.
He expressed concern over practices that require consumers to pay upfront for meters without reimbursement, a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021.
He also noted that DisCos frequently places consumers with faulty meters on estimated billing, which is prohibited under NERC’s regulations.
Bello also said that the FCCPC is committed to enhancing consumer education on metering and billing practices to guard against potential exploitation by service providers.
He concluded by expressing appreciation for the collaborative efforts of NERC and NEMSA in building a transparent, accountable, and consumer-centered electricity sector. He reaffirmed FCCPC’s dedication to enforcing all relevant consumer protection laws within the electricity industry to uphold consumer rights and promote fair market practices.
Various consumer bodies have expressed satisfaction with the decision taken by FCCPC. Consumer Advocacy Nig, a non-governmental organization lamented that Nigerian consumers were already under a lot of financial burden and should not be made to bear more burdens.
“If the Discos want to phase out the old meters they should bear the cost and should also carry consumers along when they take decisions that affect them,” said Barrister Emi Ekelemu, of Consumer Advocacy Nig.
Cletus Orji, a customer of IKEJA Disco said since he got that message about the installation of the new meter that he had not slept because “I do not know who will bear the cost. All my efforts to get explanations from the energy producer did not yield any fruits. For the time being I will sleep with two eyes closed.”
